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Technology Stocks : Wintel's Demise
MSFT 519.23+0.3%9:30 AM EST

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To: Thomas Mercer-Hursh who wrote (150)9/14/1997 7:06:00 PM
From: Bill Jackson   of 328
 
Thomas; Want to try a net PC, just buy a stripped Wintel, no hard or floppy, with 16M, with a network card and use the browser and Modem on an adjacent PC. Obviously you will need to use a citrix like method to give you a gui, but such a box, based on Pentium 133 should cost as follows.
Case with power supply $30
Keyboard $12
Mouse $10
Motherboard $85
CPU $90
16Meg $45
VGA card $35
Net card $25
VGA monitor $185 Total just over $500
If you make the motherboard with standard composite video to use a TV, and add a small RF modulator to channel 3-4 you would save the 185 for the monitor and 35 for the VGA card, and replace it with about $15 costs. So a TV only version would be then= $312, and it would be fully expandable, just like any WIntel, buy memory, but hard drive, buy VGA. So the NC is here now(in a way) Of course using a smaller case, with no cards(all in one motherboard) would bring the cost down to around $250. And if you avoid Intel, you can use an embedded CPU, from Joe Smiths fine CPUs Inc and save another $75 and use only 8Meg dram and save another $20, and you see that a rudimentary NC(no expansion capability) would be around $150 cost.( Retail price??)
So to test fly the NC start with stripped WIntels with expansion capabilities. If this is done then the WIntels will have both markets, as a differential of $100 between a one trick box, and one that is fully upgradeable to the latest Intel/? CPU will not drive such a market. The competition in the Wintel arena is so intense that such a stripped Wintel can be bought any where for less than 10% above the prices I quote(that is the margin in WIntels), however a net PC with its own box etc, with a raw material cost of $150 will sell for $300-400 after it has danced down the wholesale/retail channel. What to use as an OS with no hard drive?, Would a citrix OS in ROM perform here?(I am not familiar with Citrix and their products, would some one comment here,) you will not have netscape etc here with no hard drive, unless netscape has made such a ROM set as part of their "far see" on this concept. In that case a browser ROM set would cost around $35 to embed on the board, including a $5 royalty to Netscape. Such a system would Browse, save to server(ISPs will offer this service if needed, but why save any thing?), print to server or local print would be an easy option(depends on venue. Intranets would print to network and save on their sever. Homeowners would print locally, and not save, or make a deal with ISP.
An appliance with no expansion path would be a trouble free, fast power up device, with few problems, and cost about the same as a stripped Wintel.(after wholesale/retail channel) So I think they will make a few million, sell a few hundred, and move the rest at surplus auctions after they bite the bullet bigtime.
Of course the low end WIntel needs a Browser ROM by netscape or Microsoft. And I bet Microsoft and Netscape will make on available in the price range I suggest. Netscape to keep their browser model serving their server software, as they are dominant there, and Microsoft to avoid a huge number of people saying Bill who??, who would bypass windoze.
Bill
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